Marconi to Acquire Wireless Network Services Business for $108 Million
FRIDAY, JULY 28, 2000 9:10:00 AM EST
PITTSBURGH and LONDON, Jul 28, 2000 /PRNewswire via COMTEX/ -- Marconi MCONY, a global supplier of advanced communications solutions, today announced that it will acquire Albany Partnership Limited (APT), a European based provider of services to wireless telecommunications network operators and equipment suppliers, for just over $108 million.
APT, which was founded in 1987, has approximately 350 employees focused on the development and maintenance of mobile telecommunications networks. The services offered by APT include identification and acquisition of sites suitable for the location of aerial masts, and design, construction and maintenance of aerial masts. For the year ended April 30, 2000, APT reported revenues of almost $30 million and a profit before tax of more than $3.6 million. Customers include all major UK mobile operators.
The large-scale rollout of fixed and 3G mobile wireless networks over the next several years represents a major business opportunity for APT. Marconi intends to build on the APT business to create a pan-European provider of wireless infrastructure services, drawing on resources from its subsidiary, MSI, one of the world's leading providers of wireless network planning services, and from Marconi Services' local in-country field engineering capability.
Marconi will pay approximately $108 million for the shares of APT. The consideration is payable in Marconi shares, loan notes and cash. Marconi has made application for the listing of 1,697,031 new Marconi shares to be issued as part consideration for the shares of APT. Admission of these shares to the Official List is expected to be granted today. In addition, a further 692,666 new Marconi shares may be issued over the next 2 years, subject to certain performance conditions being fulfilled. The acquisition is expected to close later today.
Commenting on the acquisition Neil Sutcliffe, CEO of Marconi Services said, "To roll-out the next generation of 3G mobile wireless networks will require massive investment in network infrastructure. Operators need a partner that can source large numbers of mast sites, and help plan, design and build cellular networks quickly. Marconi will invest in APT's development and, together with MSI and our existing network deployment and operation capability, we intend to create a pan-European network infrastructure services business to partner with 3G network operators."
Andrew Elliman, Managing Director of APT said, "I am delighted that we have concluded a deal with Marconi. As a dynamic and forward-looking communications company, Marconi provides the ideal atmosphere for APT to maximize the potential of 2 and 3G network roll-outs over the next few years. I believe that the major increases in both financial and human resources will enable us to deliver improved services in terms of volume and speed to existing and future clients world-wide."
About Marconi plc
Marconi plc is a global communications and IT company with 49,000 employees worldwide and sales in over 100 countries. It supplies advanced communications solutions and the key technologies and services for the Internet. Marconi plc is listed on the London Stock Exchange under the symbol MNI. The headquarters of Marconi Communications is in Pittsburgh, PA. Additional information about Marconi can be found at www.marconi.com.
All brand or product names are trademarks of their respective holders.
For more information, contact Jim Blew, Media Relations of Marconi, 724-742-7745, or james.blew@marconi.com, or Charlie Foreman, Investor Relations of Marconi, +44 (0)20 7306 1545, or charlie.foreman@marconi.com
SOURCE Marconi plc
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